O2 to raise broadband prices by up to 27%

Ouch

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Updated O2 is putting up its broadband prices again, just a month after increasing them in line with the rise in VAT. Existing customers are particularly hard hit.

A subscriber paying £7.66 a month after January's VAT rise will pay £9.50 after 31 March - an inflation busting increase of 24 per cent.

Pay £10.21 a month now, and come April you'll be paying £13 a month - a whopping 27 per cent rise - according to one subscriber in receipt of a price hike letter.

O2 told its customers: "Internet use has changed dramatically over the last few years and this is likely to continue. We need to increase our prices so we can still give you the level of service you’d expect from us."

Notifications of the price change went out to customers this week.

"You can leave without penalty if you tell us within 30 days of receiving your price change notification letter or email," O2 told subscribers.

O2 currently offers three broadband deals to new subscribers priced at, respectively, £13.28, £17.36 and £25.52. After 31 March, they go up to £13.50, £17.50 and £26. That's an increase of between 0.8 and 1.8 per cent - rather less than existing subscribers are being forced to cough up. ®